JP Speech Summary (Patreon)

Summary of Jerome Powell's Jackson Hole Speech (8/25/23)

• First he read to us like we are 5 years of age stating all the obvious facts we know. 
• The Fed is "prepared" to raise interest rates further if needed to bring inflation down to its 2% target.
• The Fed will not change its 2% inflation target.
• Did I mention the 2% target?
• The Fed will "proceed carefully" in deciding whether to raise rates again, and will take into account the impact of rate hikes on the economy. They know the Deficit is exploding... but economy will not crumble - total catch 22
• He did not speak to this but the job market data is not good... yes people are finding jobs but the pay is down big in real PP terms
• Lowering inflation will require a "softer" labor market, which means some job losses - like fire and brimstome from last year.
• Above-trend economic growth could warrant more rate hikes - we really need to kill this economy!
• It seems like a long "pause" in the Fed's rate-hiking cycle is coming as they are in this weird catch 22.  
• Elections are coming which means money printing and good times - unless JP does not want to be friends of the Dem Party (which his DNA says he is not).